Thursday 11/29/07, Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans dropped again, by quite a bit, from last Thursday's averages. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.10% (6.05% in the southeast), down from 6.20% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.73%, down from 5.83% last week. These are the lowest the averages have been in more than two years!
"Interest rates for US Treasury securities have been drifting lower this month over market concerns that the housing slump and stress in the credit markets could slow further economic growth", said a Freddie Mac spokesperson. That made it possible for mortgage interest rates to slip even lower this week.
It was also reported this week that nationwide house prices fell 4.95% during the 12 months ending in September 2007. Keep in mind that this is an average amount. Some areas saw much less of a price drop and others saw a greater declines.
As I mentioned last week, we now have a situation where prices have dropped significantly, and yet interest rates are also at historically low levels. Normally, either when one is low the other is high, and vice versa. At some point either the interest rates or the home prices will start going up. This may be the time for buyers who have been deferring making a move to finally give serious thought to purchasing a home in the near future.
Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.
If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.
If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida